Haier : Taking a

Chinese Company GROUP 11

Global TUSHAR MANCHANDA (DM19253 )

TOBRUK BHAN (DM19252)
MANASI (DM19228)
SHRAVANI SARMA (DM19247)
JAY SHETHWALA (DM19223)
R.AMRITHA (DM19234)
Why was Haier so successful in
China?
 From the start, had high focus quality as compared to other
competitors
 5% to 7% invested in R&D to ensure continuous innovation. Thus,
always distinguished products in the market with high scope.
 Serving to the needs/demands of customers, thus showing High
market responsiveness
 Strong brand reputation helped in going global.
 The best brand known for its after sales service and service quality.
 While competitors spend huge on 3rd party logistics, Haier had one
logistic company serving the entire group = low cost + high
operational efficiency
Was Haier’s decision to globalize into
developed markets early a good
strategy
 Being well known in developed markets enables easy
penetration into emerging markets
 Developed countries have high quality requirements
which can help them develop their product.
 Popularity in developed nations increases the brand
image and also create a competitive edge
 Strategy to enter the niche market further helped them
establish before entering into regular market.
 They also set up manufacturing units in the developed
nations to have a more national touch to the products
Can Haier build on its success in niche products to
become a dominant global brand in high-end white
goods?
 Haier entered the market with niche products like compact
refrigerators for students and offices.
 Due to less competition, these products brought high margins and
also the attention of major retail chains like Walmart.
 Haier got successful in this niche product market, hence they
launched the standard refrigerators and washing machines.
 The challenges faced while becoming a global dominant brand
were:
o Haier didn’t have any other appliances launched so people were not
able o recognize its brand.
o Also, the competitors were established in the white goods market where
as Haier was only established in the niche products market.
Is Haier’s Three-Third Strategy, a
viable or wise approach?
Personally, We believe that it is indeed a smart move on Haier’s part to
follow this exact strategy. It essentially helps them to minimize their risk
factor in their operations as well as market risk.
Division of Business in 3 parts. Reduced operational risk factor.
Divisionof customer base, helps in reducing market risk by several
factors. Basic principal of pressure applies.
Due to diversification, their risk factor is spread out. This means that
they can internally finance a project in some other sector using the
profits earned by a different business.
Thank You